LGT Group, the Liechtenstein-headquartered private bank, reported an increase in profit for the first six months of 19 per cent to SFr102.8 million ($112.3 million), up from SFr86.3 million in the first half of 2013.

LGT Group, the Liechtenstein-headquartered private bank, reported an increase in profit for the first six months of 19 per cent to SFr102.8 million ($112.3 million), up from SFr86.3 million in the first half of 2013.

The firm said in its half-yearly statement that assets under management rose by 5 per cent from SFr110.7 billion at the end of 2013 to SFr116.2 billion, while asset inflows totalled SFr2.3 billion.

In the first half of the year, total operating income increased 8 per cent to SFr475.5 million. Net interest income contributed SFr42.9 million (+10 per cent), commission and service fee income was SFr 326.1 million (+2 per cent), and trading and other income SFr 106.5 million (+29 per cent).

The bank had a tier 1 capital ratio of 20.7 per cent, down from 21.3 per cent at the end of 2013.

The cost-income ratio fell by 6 percentage points to 71 per cent compared to last year.

The bank said that the acquisition of private banking assets from HSBC in Switzerland announced in June is proceeding according to schedule and is expected to be concluded in the fourth quarter. As a result of the deal, LGT expects its assets under management to rise to over SFr125 billion.

LGT is optimistic in its outlook for the further development of its business for the remainder of the year.

Depreciation, amortisation and provisions fell 27 per cent to SFr20.5 million, primarily reflecting LGT Bank Switzerland’s share of the upfront payment made by Swiss banks under the withholding tax agreement with the UK in the first half of 2013.

“The acquisition of the attractive private banking portfolio from HSBC in particular will help us to significantly raise our profile in key markets. We will continue to make targeted growth investments in the future and will seek to bring further good teams onboard. Thanks to our solid capitalisation, our stable ownership structure and our prudent, long-term strategy, we have an excellent basis for achieving this,” said HSH Prince Max von und zu Liechtenstein, chief executive of LGT Group.